If you ask ppl invested in this they will obviously tell you it is. if You ask someone who is very astute with equities and LBOs it is absolutley nightmarish. With this particular RS it is horrible for several reasons.
1) The single fact that they released the filing with a large heading "Your vote is not needed" was alarming for a RS of this size
2) The fact they are RS WITHOUT lowering the AS is enormous. Unfortunately the majority of longs on this board have not been around long enough to know the huge difference in a company that has contracts and revenues that does a RS with lowering the AS because it shows financial strength. However ADMD is not only keeping the AS the same but they are hinting at raising it! If you read the Qs and filings the amount of shares back owed and recently given out and it still states in the filings they will need to raise tremendous capital that Cadwell will NOT fund for device implementation..guess where that will come from? Their credit is horrible and ruined, their word is trash as well
3) Their financials to the amatuers look like they are getting better, they are in fact at 8M in negative captial and growing.
4) Another issue is after 10 years you cannot say "all bios are in debt" completely and utterly false. After 10 years they are not. Also majority of them have a revenue stream and a stronger management. ADMD has neither.
5) BMAK has been buying shares at this price, there is only one reason for this. BMAK is known as the single most toxic / dilutive MM in penny land. They are acquiring shares for the short after the RS. They have done this thousands of times and they are doing it again.
6) This will be shorted into oblivion not just for some of the reasons above but many, many more. Also notice when BMAK does buy they don't just move up just to buy the shares they wait to get their price at where they want it. Evidence on they aren't a real buyer, only purchasing at their DCA for their shares to short
7) The FDA is long away and ADMD knows it. That is another reason they are not lowering the AS. They met with the FDA and then announced a RS without lowering the AS read between the lines human trials are required. Yes other brachy are out there, keep in mind even with that this has been denied twice due to its melting matrix, so the others have zero precedent in this decision
Bottom line, it is absolutely horrible that they are doing a RS. If you go back to between Feb-May some of the expert longs here have in their history that ADMD will never do a RS...interesting
AI
